I had chosen my next stock to buy and was eager to buy it. I decided that no transaction with the $6.95 fee should be less than $500. All stock buying and sell cost $6.95 per transaction with E*Trade. I have seen lower rates advertised but have stayed with E*Trade simply because I don’t make that many trades, transfers are a pain in the butt, and transfers take several days if not a week.
$6.95 is 1.39% of $500. My goal was to make sure all my trades were as profitable as possible. They say 8-10% return per year is pretty good. If you trade with smaller transactions you could end up paying 1/2 your profits in fees.
I wanted to meet my threshold without waiting so I transferred an additional $50 to my IRA. I then bought 4 shares of NextEra Energy (NEE) for $140.4018 each, the transaction totaled $592.56.
I was attracted to this stock because they had a solid history of steady gains and paid a 2.59% annual dividend. With my last purchase being riskier I wanted to expand my safer investment portfolio as well.
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